Commenting on the Energy and Climate Change Select Committee’s report on energy network costs, Gareth Stace, EEF’s Head of Climate and Environment, said:
“With continued concern from UK manufacturers over uncompetitive energy prices, this report brings some timely scrutiny to an element of consumer bills that has hitherto not featured prominently in the wider public debate.
“For a large energy intensive manufacturer, network costs can make up in excess of a quarter of energy bills and as such it is essential that every step is taken to ensure value for consumer money. A near monopoly situation that exists for network operators means that intense and continued public scrutiny is by far the most effective means of doing this.
“The Committee’s report makes clear that the new price control framework is a marked improvement from its predecessor and that costs have come down significantly since privatisation. However, with higher than expected profits for network companies and an opaque and complex charging system, often resulting in uncertainty and price volatility, the Committee is right to raise concerns and call for measured reform. An incoming Government must take heed of the report’s recommendations and ensure due attention is given to this area.”